Professional Indemnity FAQ

Civil Liability Wordings - Are they the best?

Are Civil Liability Wordings the best type of Professional Indemnity wordings to have?

Do not get misled by insurers who boast they have a civil liability wording. These are usually similar or the same as what we call an “Act, Error or Omission” wording because the civil liability wording has many more exclusions, conditions and definitions included in the cover. Avoid totally policies that have in their Insuring clauses “Breach of professional duty by Act, Error or Omission caused by Negligence”. It will not pick up any claims relating to Statutes such as the Trade Practices Act, or Health & Safety Acts (unless extended accordingly).

Latest News

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

read more

Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

read more